Does the Engel & Volkers franchise agreement allow a franchisee to claim the designated litigation venue is inconvenient?

According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees are prohibited from claiming that the designated litigation venue is inconvenient. The franchise agreement specifies that any litigation must be instituted in a state or federal court of competent jurisdiction located in New York, NY. Franchisees agree that any dispute regarding the venue will be resolved exclusively by these courts.

Specifically, the agreement includes a waiver where the franchisee covenants never to assert or claim that the designated venue is improper, inconvenient, prejudicial, or otherwise inappropriate. This includes waiving any claim under the judicial doctrine of forum non conveniens, which allows a court to dismiss a case if another court or location is more convenient.

This clause has significant implications for prospective Engel & Volkers franchisees. It means that regardless of where their franchise is located, they must be prepared to litigate any disputes with Engel & Volkers in New York. This could result in increased legal costs due to travel, lodging, and potentially hiring New York-based attorneys. Franchisees should carefully consider this venue requirement and its potential impact on their business before entering into the franchise agreement.

Such venue clauses are relatively common in franchise agreements, as they allow the franchisor to manage legal disputes in a location familiar and convenient to them. However, franchisees should be aware of the potential burdens and ensure they are comfortable with the designated venue before signing the agreement.